accounting assignment

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avav19

Business Finance

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Requirements

1. What is the fixed cost per month?

2. What is the variable cost per pancake?

3. If Devon's Golden Brown Pancake Restaurant serves 3,900 pancakes in a month, what would the company's total operating costs be?

Question B

Global Music produces student-grade violins for beginning violin students. The company produced 2,600 violins in its first month of operations.

At month-end, 500 finished violins remained unsold. There was no inventory in work in process. Violins were sold for $122.50 each. Total costs from the month are as follows:

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Page |1 ASSIGNMENT # 2 ACCT 2242 – Management Accounting FALL 2018 Your name ___________________________ Student ID# ___________________________ Section # ----------- Question A Assume that Devon's Golden Brown Pancake Restaurant does a regression analysis on the next year's data using Microsoft Excel 2007. The output generated by Excel is as follows: Requirements 1. What is the fixed cost per month? 2. What is the variable cost per pancake? 3. If Devon's Golden Brown Pancake Restaurant serves 3,900 pancakes in a month, what would the company's total operating costs be? Page |2 Question B Global Music produces student-grade violins for beginning violin students. The company produced 2,600 violins in its first month of operations. At month-end, 500 finished violins remained unsold. There was no inventory in work in process. Violins were sold for $122.50 each. Total costs from the month are as follows: The company prepares traditional (absorption costing) income statements for its bankers. Global would also like to prepare contribution margin income statements for his own management use. Requirements: Compute the following amounts that would be shown on these income statements: 1. Gross Profit 2. Contribution margin 3. Total expenses shown below the gross profit line 4. Total expenses shown below the contribution margin line 5. Dollar value of ending inventory under absorption costing 6. Dollar value of ending inventory under variable costing 7. Which income statement has a higher operating income? By how much? Explain why?
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Anonymous
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